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Business Observer Saturday, May 23, 2009 9 years ago

B of A files foreclosure on Colony assets

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Bank of America has filed a foreclosure suit against Colony Beach & Tennis Resort Chairman and owner Dr. Murray “Murf” Klauber.

Bank of America has filed a foreclosure suit against Colony Beach & Tennis Resort Chairman and owner Dr. Murray “Murf” Klauber and his resort corporations, alleging they have defaulted on three loans whose outstanding amounts total $8.02 million.

In a complaint filed with the Sarasota County 12th Judicial Court April 23, Bank of America alleges that Klauber and seven corporations controlled by him have been in default of loan covenants and payments since October 2007.

The suit says the bank notified Klauber twice at the end of 2007, on April 23, 2008, and on Dec. 18, 2008, that he and the corporations were in default. In the December letter, the bank said the balances due “were being accelerated.”

The bank filed its foreclosure suit shortly before Klauber and his lawyers, in a separate action, began arguing in federal bankruptcy court in Tampa that the Colony's unit owners owe the resort about $14 million in unpaid association fees for the resort's upkeep and maintenance.

Katie Klauber Moulton, president of the Colony and Klauber's daughter, told The Longboat Observer that Bank of America has suspended action on the foreclosure, pending the outcome of the bankruptcy trial.

In the foreclosure complaint, Bank of America lists as collateral on the three loans as The Colony Dining Room restaurant; The Monkey Room bar; tennis shop Le Tennique; a locker-room unit; meeting-room unit; two hotel penthouse units that make up
Klauber's office and living quarters; the beachfront, three-bedroom Vagabond unit; and recreational property on site that includes walking trails and tennis courts.

The loans date back to March 1995, when Klauber and four of his companies borrowed $4.2 million from Republic Bank. In the 14 years since, the loans have been revised and assigned to Bank of America.

Named as defendants in the foreclosure suit were Colony Beach Inc., Colony Beach & Tennis Club Ltd., Resorts Management Inc., Colony Beach and and Tennis Club Inc., Colony Special Services Inc. and Le Tennique Inc., all Florida corporations; Colony Investors Inc., a Michigan corporation; and Klauber.

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